San Diego’s Biotech Industry Still Near the Top

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A study released today by the Milken Institute says San Diego is still one of the nation's biotech leaders, despite economic hard times.

SAN DIEGO  A study released today by the Milken Institute says San Diego is still one of the nation's biotech leaders, despite economic hard times.

The Milken report was written by Ross Devol. He says San Diego is still host to one of the top three biotechnology clusters in the nation. Devol says the challenge facing many San Diego companies is a shortage of cash. That may result in many local firms being bought out by big pharma companies in search of good investments.

The nation's economic slowdown has hit the entire industry with a serious money shortage. Another report was released by investment advisers Ernst and Young. It showed biotech businesses in the U.S. and Europe raised 46 percent less investment capital last year than in 2007.

That report called the biotech business model "unsustainable." It said the future will depend on the industry's ability to respond to changes like health care reform and the increased use of generic drugs.